Bank of Montreal Announces Specific Share Repurchase Program as Part of its Normal Course Issuer Bid
(4 months ago)
TORONTO: Bank of Montreal ("BMO") (TSX:BMO)(NYSE:BMO) today announced that it will purchase common shares under a specific share repurchase program (the "Program").
BMO will enter into an agreement (the "Agreement") with a third party to repurchase common shares through daily purchases that will take place between January 10, 2018, and February 2, 2018, subject to a maximum of 3,000,000 common shares. The Program will form part of BMO's Normal Course Issuer Bid for up to 15,000,000 common shares (the "NCIB") announced on April 27, 2017.
Pursuant to the terms of the Agreement and subject to the terms of an issuer bid exemption order issued by the Ontario Securities Commission (the "Order"), the third party will purchase BMO's common shares on Canadian markets for the purpose of fulfilling its delivery obligations to BMO under the Agreement. The price that BMO will pay for common shares purchased by it from the third party under such Agreement will be negotiated by BMO and the third party and will be at a discount to the prevailing market price of BMO's common shares on the Canadian markets at the time of the purchase. BMO currently intends to purchase the maximum of 3,000,000 common shares under the Program, however the number of common shares purchased pursuant to the Program may be less than the Program maximum if, among other things, it is not possible to purchase common shares within the price range established prior to commencement of the Program, if trading is suspended, or as a result of market factors. In accordance with the terms of the Order, immediately following the completion of the Program, BMO will issue a news release providing information regarding the purchases made pursuant to the Program including the number of common shares purchased and aggregate purchase price paid.
Pursuant to the terms of the Agreement and the Order, all purchases made by the third party or its agents on the TSX and other Canadian markets pursuant to the Program will be made in accordance with the TSX rules applicable to the NCIB, subject to limited exceptions as provided in the Order. BMO will acquire common shares from the third party pursuant to the Agreement as part of the NCIB and such common shares will be cancelled upon purchase by BMO.